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March 2018

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China’s economy is slowing down but its apparel industry had never had it so good. The official government reports suggest that China is projected to grow at a sluggish pace, however, in comparison, its apparel industry is set to outpace it by a mile.

The positive growth projections of the apparel sector are due to the higher disposable incomes and rapid urbanisation being witnessed in China. According to the China Apparel Industry Report, 2013-2016, the country’s apparel market size will reach RMB 1.1 trillion in 2016.

Men’s wear dominates the Chinese apparel market with a share of 47 per cent in 2012. The rising middle class, owing to a demographic shift, is set to release a huge wave of consumer spending in the coming years and the domestic men's wear market sales is expected to reach RMB 408.4 billion by 2016.

Women wear sector is evolving in China with a strong demand to withstand any future challenges. Quality has become paramount, as well as their sense of value and appearance.

Meanwhile, with the arrival of baby-boom, the kids wear sector is set to become the fastest growing apparel sector in China. Both national and international brands are vying for this space in the crowded market.

Chinese consumers pick clothing looking at attributes such as fibre content and brand, and are willing to pay premium to buy the quality they desire.

As the Chinese apparel sector matures and grows, the competition is bound to increase further in the coming years, and the player who is able to rethink their strategies and reinvent their brands will be able to grab the bigger slice of the China’s apparel market share pie.